A carefully planned "fan benefit" campaign has spiraled into a crisis of trust, as Douyin influencer "Sister Hailey," with millions of followers, faces allegations of selling whitening cream products containing unauthorized ingredients and misleading consumers through false advertising. This incident not only violates consumer rights but also poses a serious challenge to the credibility of livestream commerce.
Case Overview: From "377 Whitening Miracle" to Ingredient Controversy
The controversy centers around a product named "[Hailey] Kiehl's Sixth Generation 377 Whitening Spot-Removing Cream," sold through Hailey's official store operated by Hailey (Guangzhou) Media Co., Ltd. The product gained popularity due to its prominent promotion of "377" (phenylethyl resorcinol) as a key whitening ingredient during Hailey's livestreams. However, consumers soon discovered multiple irregularities after purchase.
Red Flag 1: Non-compliant Naming and Inconsistent Registration
First, the product name violates China's Cosmetic Naming Regulations, which prohibit the use of numbers in cosmetic names. Furthermore, official records from the National Medical Products Administration show that the registered product (No. 20130042) is simply named "Kiehl's Whitening Spot-Removing Cream" with no mention of "Sixth Generation" in its registration history. Most critically, the registered formula doesn't include phenylethyl resorcinol (377) among its ingredients.
Red Flag 2: Missing Ingredient List and Contradictory Test Results
Adding to consumer concerns, the product's ingredient list received by customers also omitted phenylethyl resorcinol. This apparent discrepancy between advertised and actual ingredients raised immediate questions about false advertising.
However, independent laboratory tests commissioned by consumers revealed the presence of phenylethyl resorcinol in the product. While this finding addressed initial concerns about ingredient absence, it introduced a more serious violation: the product's actual composition differed from its registered formula, constituting a breach of China's Cosmetic Supervision and Administration Regulations.
Legal Perspective: Dual Violations of Product Standards and Consumer Protection
According to Articles 29 and 60 of China's Cosmetic Supervision and Administration Regulations, products that deviate from registered formulas qualify as non-compliant. Whether through initial ingredient omission or subsequent formula inconsistency, these practices constitute consumer deception.
Consumer Complaints: Allergic Reactions, Refusal of Refunds, and Sales Tactics
This isn't the first controversy surrounding Hailey's livestreams. As early as January of last year, users reported allergic reactions to a "Kiehl's 377 VC Kit" purchased through her channel, with the store allegedly refusing refunds. Consumers have also criticized Hailey's sales tactics, which frequently employ "limited-time offers" and "inventory clearance" promotions that may violate China's Price Law against fraudulent pricing practices.
Influencer Accountability: Regulatory Violations and Legal Consequences
As the primary promoter, Hailey appears to have violated multiple regulations including China's Online Livestream Marketing Management Measures, Cosmetic Supervision and Administration Regulations, and Advertising Law provisions against false claims. Under China's Consumer Rights Protection Law (Article 55), she could face significant financial penalties for misleading consumers.
Market Impact: Sales Success Overshadowed by Trust Issues
On September 25, Hailey hosted a nearly 12-hour livestream featuring singer Wang Pinyuan and other influencers, showcasing approximately 80 products including Kiehl's items. Third-party data indicates her recent monthly sales range between 25-50 million yuan, demonstrating substantial market influence. However, the current controversy casts doubt on the integrity of these sales figures and highlights systemic issues in livestream commerce.
Current Status: Product Removal and Ongoing Sales
The controversial whitening cream has been removed from Hailey's Douyin store, though other disputed Kiehl's products reportedly remain available. Meanwhile, Hailey has begun promoting a new "Hanxi Whitening Spot-Removing Repair Cream" during recent broadcasts. Consumers have indicated they may pursue legal action given the potentially substantial financial scale of the alleged deception.
Industry Implications: Standardization and Consumer Protection
The Hailey incident reflects broader challenges in China's rapidly growing livestream commerce sector, where product quality control, advertising claims, and after-sales service frequently fall short of standards. Strengthening industry oversight and consumer education will be crucial for sustainable development.
This case serves as a cautionary tale for livestream commerce practitioners: trust, once lost, proves difficult to rebuild. Only through genuine commitment to product integrity and transparent business practices can the industry achieve long-term growth. Regulatory bodies must likewise enhance enforcement mechanisms to ensure consumer protection in this evolving marketplace.